In case you are one of many greater than 25 million Individuals caught with medical debt, trying to put in writing a medical invoice negotiation letter would be the reply[1].
Hospitals negotiate with insurance coverage corporations on a regular basis to decrease the invoice quantity. Why not negotiate with them your self in a lot the identical approach?
On this article, we’ll discover how one can write a medical invoice negotiation letter to begin your negotiation, what needs to be included, and what your settlement supply needs to be.
What Is a Medical Invoice Negotiation Letter?
The aim of this letter is to barter a decrease fee to your medical payments attributable to monetary hardship. This letter is shipped both on to the hospital or their billing firm.
When you obtained medical payments totaling $20,000, you may attempt to negotiate all the way down to a $5,000 lump sum fee, with the hospital waiving the remaining $15,000 due.
Data Wanted to Write a Medical Invoice Negotiation Letter
Earlier than you begin writing your negotiation letter, there are a couple of steps you have to take.
The primary can be exploring your choices for paying the debt, resembling disputing the quantity billed, pleading along with your insurance coverage firm, or making use of for funds from non-profits. Take a look at our article on easy methods to negotiate a medical invoice for extra steerage.
Subsequent, you’ll want to assemble all the data essential for the letter. This contains
- Copies of your medical payments
- Your billing account quantity
- Insurance coverage protection statements
- The suitable deal with
- Monetary statements (to find out how a lot you possibly can pay)
It’s vital to contact your hospital or their billing firm earlier than writing the letter in order that you realize who to ship the letter to and what their necessities for the letter could be.
⚕️ Be taught extra: If medical payments have been a priority, you may discover our article on PayZen’s strategy insightful.
Pattern Medical Invoice Negotiation Letter
[HOSPITAL/BILLING COMPANY ADDRESS]
[PATIENT NAME]
[DATE OF SERVICE]
[AMOUNT DUE]
[BILLING ACCOUNT NUMBER]
To Whom It Might Concern,
I’m writing concerning the providers I obtained from [HOSPITAL NAME] on [HOSPITAL BILL DATE]. The quantity due for providers is [AMOUNT DUE] on the invoice [BILL/INVOICE #].
I’m writing to barter the above medical payments as a result of I’m unable to pay the quantity requested. This debt has triggered me nice monetary hardship. [EXPLAIN HARDSHIP HERE]
I’m grateful for the providers I obtained, however as I can’t pay the total quantity due, I hope you’ll contemplate my supply of settlement within the quantity of [SETTLEMENT OFFER $] to shut out this account. To substantiate my declare…[SUPPORT STATEMENT HERE]
Thanks for contemplating my proposal, and I look ahead to listening to from you quickly.
Sincerely,
[NAME]
[ADDRESS]
[PHONE NUMBER]
[EMAIL]
Find out how to Customise the Medical Invoice Negotiation Letter
The letter above is only a pattern; you need to edit it to your particular person scenario and wishes. This letter is supposed as steerage on easy methods to craft a customized, genuine-sounding medical invoice negotiation letter.
On the very least, the letter should have these three components: your medical invoice account info, the monetary hardship assertion, and your settlement supply. Be skilled and well mannered when crafting your letter.
⚕️ Be taught extra: Trying to navigate your payments with ease? Our newest article breaks down the highest invoice negotiation providers.
Account Data
Your letter could embrace the entire you’ve been billed for providers, the date(s) you obtained providers, the bill numbers, and any affected person account ID (or different quantity) that you’ve got been assigned.
Principally, you have to embrace any info that identifies you because the affected person and/or references the invoice(s).
This info ought to seem in an easy-to-reference part on the prime of the letter and will be repeated within the introduction.
If in case you have a number of payments for a similar keep, embrace particulars on each, resembling the quantity due, bill quantity, and so on.
Monetary Hardship Assertion
It is a important a part of the letter, and it must be real. You may’t simply say, “I’m sorry, I can’t pay”; you have to give them a purpose why.
You don’t have to inform them your complete life story, however you possibly can add as many particulars as wanted to clarify your scenario.
This medical debt resulted from a extreme automobile crash that left me out of labor for six months. I’ve since discovered a brand new job, however this case left me with many debt obligations, and I’m unable to pay this invoice in full.
🚑 Or, You Can Stick With Numbers
This medical invoice is greater than 40% of my annual earnings and is forcing me into monetary hardship.
Make certain to incorporate every thing on this part that might assist your negotiation.
Settlement Provide
A superb first supply worth can be roughly ¼ to ⅓ of the unique invoice quantity. However you also needs to check out your financials to find out what you possibly can fairly afford.
Keep in mind, this can be a negotiation; you can begin with a low supply and lift it. When you can afford $1000, attempt providing $500. Suppose the hospital settles for $500, nice. And in the event that they counter $800, you’re nonetheless good.
In case you are making an attempt to barter a fee plan, embrace info on how a lot you possibly can pay each month and for the way lengthy.
As part of your supply, you possibly can supply proof of your declare, resembling values pulled from Fairhealthconsumer.org, proof of your earnings/funds, or the rest supporting the quantity you provided as truthful.
Particular Requests
It’s best to attempt talking with the hospital/billing firm earlier than you draft the letter. They might have particular requests for formatting or info required to be within the letter.
Failing to stick to their pointers might have your letter rejected with out them even contemplating your supply.
What to Do As soon as You Have Despatched the Letter
Now comes the ready recreation; you may get a reply shortly, or you’ll have to attend some time. Don’t be afraid to contact the hospital and ask them in the event that they obtained your letter and if they’ve a reply but.
Additionally, contemplate sending the letter by licensed mail so you’ve got a signed date of after they obtained your letter.
If Your Medical Invoice Negotiation Letter Is Rejected
Hopefully, in case your letter is rejected, the hospital will ship you a counteroffer. If so, keep in mind, since this can be a negotiation, you don’t have to simply accept their counteroffer. You may proceed negotiating till you attain a determine you might be snug with.
If the hospital outright rejects your supply and appears unwilling to barter additional, you may must discover different choices. They might be open to a low-dollar fee plan. Or you would attempt on the lookout for non-profit packages that can assist you pay the medical debt.
Alternatively, you possibly can wait a couple of months after which attempt once more.
If Your Medical Invoice Negotiation Letter Is Accepted
Congrats, you’ve efficiently negotiated down your medical debt. Now get that settlement signed and dated. Do that earlier than you pay them a dime.
Normally, the hospital/billing firm could have an settlement kind ready so that you can signal. If not, you possibly can add a settlement assertion and signature line to your negotiation letter and resend it.
Simply guarantee that any assertion you signal says one thing alongside the strains of the hospital agreeing to simply accept your lump sum supply and that they won’t pursue you additional for the remaining stability.
By no means settle for a deal with out proof of the settlement (i.e., recorded cellphone name, signed doc, dated e mail, and so on.)
A Be aware on Medical Debt Collections
When negotiating medical debt, there are a couple of guidelines to remember on how this debt can have an effect on your credit score.
The three most vital guidelines are:
- Medical debt needs to be excellent for no less than one 12 months earlier than it may be reported to your credit score.
- Medical debt should exceed $500 so as to be reported in your credit score.
- If a medical assortment seems in your credit score, and also you later pay it off, it have to be eliminated out of your credit score experiences.
Excellent medical payments not must crater your credit score.
⚕️ Be taught extra: Ever been blindsided by an sudden medical invoice? Understanding the No Surprises Act could be useful.
Because the new legal guidelines have been enacted, the average individual with medical collections has seen no less than one invoice faraway from their experiences, and credit score scores have gone up a median of 25 factors as soon as all medical collections are eliminated.
These regulation modifications offer you extra time and leverage to efficiently negotiate your medical payments.
Keep in mind that in case you use a mortgage or bank card to pay a medical debt, the debt might be thought of shopper debt, and you’ll lose all protections that go along with medical debt. That is usually not a good suggestion.
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